Numbers still moving up.
What will it take to see pricing relief?
As speculators keep pouring money into refined product, it seems we're getting into the same runaway scenario we witness in early to mid 2008. Such was the time then when we were all exposed to a run-up in prices that saw crude oil finally enter the tailspin from $150 US a barrel.
Question now is: How long before we hit the wall?
Some stories out there are suggestive of $180 US a barrel oil by mid July, hardly likely with the world economy on the precipitous edge of economic recovery. If it does make it that high, look for cuts in manufacturing and production world-wide. I think we're close to a retreat, but the problem right now is how does it start?
Consumers are on the edge now. If prices to consumers do increase again this week, we may be at a early pivoting point. I just can't see how consumers can't spend in an age where just going to the grocery store is beginning to get expensive.
Surely, the market traders are realizing this?
I don't think so.
Here's what I have so far for this weeks price change, keeping in mind my numbers don't track volatility that occurs, and, of course, one day to go:
As speculators keep pouring money into refined product, it seems we're getting into the same runaway scenario we witness in early to mid 2008. Such was the time then when we were all exposed to a run-up in prices that saw crude oil finally enter the tailspin from $150 US a barrel.
Question now is: How long before we hit the wall?
Some stories out there are suggestive of $180 US a barrel oil by mid July, hardly likely with the world economy on the precipitous edge of economic recovery. If it does make it that high, look for cuts in manufacturing and production world-wide. I think we're close to a retreat, but the problem right now is how does it start?
Consumers are on the edge now. If prices to consumers do increase again this week, we may be at a early pivoting point. I just can't see how consumers can't spend in an age where just going to the grocery store is beginning to get expensive.
Surely, the market traders are realizing this?
I don't think so.
Here's what I have so far for this weeks price change, keeping in mind my numbers don't track volatility that occurs, and, of course, one day to go:
- Heating and stove oils show "up" by 1.68/Lt again this week.
- Diesel is also up by 1.9/Lt, and...
- Gasoline shows up also, but this time by 2.6 cents/Lt.
Back again tomorrow night, until then, or follow me on Twitter...
George
Twitter: @GeorgeMurphyNDP
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